How to Borrow on JustLend DAO: TRON Loans Explained
Borrowing is the other half of JustLend. The first half, supply, is covered in the main JustLend DAO guide; this page focuses only on the borrow side. On JustLend DAO you can draw a loan against your own crypto without selling it, and because the protocol runs on TRON the whole thing settles in seconds for a fraction of a cent. This guide walks through how to borrow on justlend, what collateral you need, the risk value that keeps you safe, how liquidation works, and how to repay and withdraw when you are done.
How justlend borrow works
Borrowing on justlend is overcollateralized: you cannot borrow more than a fraction of what you supply. You first deposit an asset into a collateral-enabled market and receive jTokens, the interest-accruing receipts that also represent your claim on the deposit. Those jTokens back the loan. Then you pick the asset you want to borrow, enter an amount, and sign. The borrowed tokens land in your wallet immediately and your risk value rises to reflect the new debt.
The interest a borrower pays flows straight to the suppliers in that market, minus the protocol's reserve factor. There is no fixed repayment date and no credit check; the only "lender" is the smart contract, and the only thing it cares about is that your collateral keeps covering your debt.
Collateral: what you can borrow against
Each market has a collateral factor, the share of your supply that counts toward your borrow limit. A stablecoin market might let you borrow up to 80% of your supply, while a volatile asset might only count for 50%, because the protocol has to leave headroom for price moves. You can enable or disable a supplied market as collateral from the dashboard; only collateral-enabled markets raise your borrow limit.
Keep a little TRX aside for energy and bandwidth so the borrow transaction lands. TRON fees are low, but a failed transaction still costs you a retry.
The risk value: the number that keeps you safe
The single most important number for a justlend borrower is the risk value. By default the safe upper limit is 80. You can raise it to 90 to borrow more aggressively, but in that mode you should watch the risk bar closely. When the bar turns red, your account is one market move away from liquidation. Borrowing is useful; borrowing up to the line is how accounts get liquidated.
A sensible habit is to borrow to a risk value of roughly 50 to 60 and then stop. That leaves a wide buffer for collateral prices to move before your health factor gets anywhere near the liquidation line.
Liquidation: what happens and how to avoid it
If your risk value climbs to 100, your account is eligible for liquidation. A liquidator repays part of your debt and takes some of your collateral in return, usually at a discount. That discount is the liquidator's profit and your loss — you lose more collateral than the debt was worth. The way to avoid it is the way you would expect: keep the risk value down, leave a buffer, and do not borrow volatile assets against stable collateral without headroom. If your collateral starts falling, your options are to repay part of the debt or supply more collateral — both lower the risk value.
Repay and withdraw
Repaying returns the borrowed asset to the pool and lowers your risk value; interest accrues while the loan is open, so the amount you owe grows over time. You can repay in part or in full at any time, with no penalty and no fixed schedule. Withdrawing pulls your supplied asset back out, but only up to the part that is not currently locking a borrow. If your collateral is already backing a loan, you can withdraw only the free portion — repay first if you need more headroom.
What you can borrow on JustLend
JustLend DAO runs around fifteen token markets, mostly TRC20 assets on TRON such as TRX, USDT, and USDJ. The dashboard lists each market with its supply, borrow, utilization, and collateral settings, so you can compare borrow rates before you draw a loan. A market that is heavily borrowed will charge you a higher rate; an idle one will be cheaper to borrow from.
Borrowing tips
Borrow stablecoins against stablecoin collateral for the lowest liquidation risk; borrow only what you actually need rather than the maximum you can; and check the risk value whenever collateral prices move. If you also stake TRX to sTRX, that sTRX stays usable as collateral, so liquid staking and borrowing can stack without locking your capital. For how the protocol is governed — which markets exist and how parameters get tuned — see the JustLend DAO governance guide.
The short version: justlend borrow is overcollateralized, instant, and non-custodial. Post collateral, watch the risk value, keep a buffer, and repay when you are done. Used carefully it is a clean way to access liquidity without selling your TRON assets; used carelessly it is a fast way to get liquidated.
Frequently asked questions
How do I borrow on JustLend?
Supply an asset to a collateral-enabled market to receive jTokens, then choose the asset you want to borrow, enter an amount, and sign. The loan lands in your wallet and your risk value rises. See the main JustLend DAO guide for the full protocol overview.
What is the risk value on justlend?
The risk value measures how close your account is to liquidation. The safe upper limit is 80 by default; you can raise it to 90, but a red bar means you are one market move away from being liquidated.
What collateral do I need to borrow?
You need overcollateralized supply in a collateral-enabled market. Each market has a collateral factor that decides how much of your supply counts toward your borrow limit — stablecoins count more, volatile assets less.
How do I avoid liquidation on justlend?
Keep the risk value well below 100 with a buffer, repay part of the debt or add collateral if prices fall, and avoid borrowing volatile assets against stable collateral without headroom.